Smart Sand (NASDAQ: SND) and Texas Industries (NYSE:TXI) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, earnings, risk, dividends, profitability and analyst recommendations.
Institutional and Insider Ownership
49.5% of Smart Sand shares are held by institutional investors. 46.4% of Smart Sand shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This is a summary of current ratings for Smart Sand and Texas Industries, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Smart Sand currently has a consensus target price of $13.28, suggesting a potential upside of 31.46%. Texas Industries has a consensus target price of $82.00, suggesting a potential upside of Infinity. Given Texas Industries’ higher possible upside, analysts clearly believe Texas Industries is more favorable than Smart Sand.
This table compares Smart Sand and Texas Industries’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Smart Sand and Texas Industries’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Smart Sand||$59.23 million||6.89||$10.37 million||$0.66||15.30|
Smart Sand has higher revenue and earnings than Texas Industries.
Smart Sand beats Texas Industries on 8 of the 9 factors compared between the two stocks.
Smart Sand Company Profile
Smart Sand, Inc. is a producer of Northern White raw frac sand, which is a proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company sells its products primarily to oil and natural gas exploration and production companies and oilfield service companies under a combination of long-term take-or-pay contracts and spot sales in the open market. It owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin. In addition to the Oakdale facility, it owns a second property in Jackson County, Wisconsin, known as Hixton site. Its sand reserves include a balanced concentration of coarse (20/40, 30/50 and 40/70 gradation) sands and fine (60/140 gradation) sand. Its reserves contain deposits of approximately 20% of 20/40 and coarser substrate, over 40% of 40/70 mesh substrate and approximately 40% of 100-mesh substrate. Its 30/50 gradation is a derivative of the 20/40 and 40/70 blends.
Texas Industries Company Profile
Texas Industries, Inc. is a supplier of construction materials in the southwestern United States. The Company operates in three segments: cement, aggregates and consumer products. Its cement segment produces gray portland cement and specialty cements. The Company’s cement production and distribution facilities are concentrated primarily in Texas and California. Its aggregates segment produces natural aggregates, including sand, gravel and crushed limestone. The Company’s consumer products segment produces ready-mix concrete. It is also a supplier of natural aggregates and ready-mix concrete in Texas and northern Louisiana and in Oklahoma and Arkansas. As of May 31, 2013, the Company had 123 manufacturing facilities in five states. During the fiscal year ended May 31, 2013 (fiscal 2013), it produced approximately 4.3 million tons of finished cement. The Company produced approximately 14.2 million tons of natural aggregates during fiscal 2013.
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